Yingli Says Margins Hurt By Tax Adjustment as Shipments Surge

Yingli Green Energy Holding (YGE) Co., the world’s biggest solar-panel maker, said its margin in the fourth quarter will be lower than it had expected because of a change in taxation and disposal of some inventories.

The Chinese manufacturer said it expects its gross margin to be in the range of 12 percent to 13 percent, weaker than its previous guidance of 14 percent to 16 percent, primarially because of a tax adjustment related to value added tax. It also disposed of some of its less efficient photovoltaics.

The company also said it had stronger shipments than previously expected, with module sales rising 11 percent to 12 percent in the final three months of the year. Yingli previously had expected an increase in the “mid-to-high single digit” percentages, according to a statement from the company released today.

Yingli confirmed it expects shipments of as much as 3.3 gigawatts in 2013. It’s due to report earnings for the quarter on March 18.

To contact the reporter on this story: Reed Landberg in London at landberg@bloomberg.net

To contact the editor responsible for this story: Alex Devine at adevine3@bloomberg.net

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